Plagaz Funding News- Swedish ClimateTech Startup Plagazi Raises €29.5 Million

The funding will support its main project, Gävle Circular Park (GCP), which plans to produce hydrogen in a new way by turning waste into gas.

“The grant signature is very rewarding following a very collaborative grant preparation process with the European Climate Agency [CINEA]. This non-dilutive funding agreement will be a great asset to attract private funding now,” said Soran Shwan, CEO of Plagazi AB.

Plagazi’s Gävle project was one of only 85 selected from 337 applications to receive EU Innovation Fund support.

The plant will process 22,000 tons of waste each year to produce up to 4,000 tons of clean hydrogen. It’s set to begin operating by May 31, 2028, helping the EU move toward its 2030 goal of cutting greenhouse gas emissions by 55% and achieving climate neutrality by 2050.

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Plagazi’s technology can reduce greenhouse gas emissions by 206% compared to traditional hydrogen made from fossil fuels.

It also uses about one-third less water and 80% less electricity than hydrogen made by electrolysis, making it both eco-friendly and cost-effective.

The process also creates useful by-products like slag and metals, removes toxic waste, and captures CO₂ permanently.

The project brings economic benefits too—over 20 jobs during early stages and 30 more as it grows. Local suppliers will be involved, helping to support regional green tech and energy systems. Extra heat from the plant will be used in the local district heating network.

Final financing is expected by May 31, 2026, with operations starting in 2028. Although the funding was first announced in October 2024, it is now officially confirmed—marking Plagazi as a key player in Europe’s clean hydrogen future.

“We are proud that the EU has now put us on the map among other low-carbon hydrogen projects in Europe and that there is growing recognition that technology openness is the right approach to promote a strong climate tech sector in Europe,” added Shwan.

About Plagazi

Plagazi, founded in 2007, is working to solve a big problem in ClimateTech—how to turn non-recyclable waste into clean energy. Using a special recycling process and plasma gasification technology from InEnTec, the company’s pilot plant in Gävle will convert waste into circular hydrogen and capture CO₂ in liquid form.